gambling. back to you. jon: thank you. and thank you for joining us. patti ann: "america live"s right now. >> and we start with a fox news alert on the latest reaction to the crushing new jobs report. did you hear about it? president obama addressing anxious americans saying we've got a long way to go. welcome, everyone, to "america live." i'm gretchen carlson in for megyn kelly today. a new sign the economy still in big trouble. look at this. a slowdown in hire anything june pushing the unemployment rate now to 9.2%. only 18,000 net new jobs were added to the work force last month. at least 250,000 jobs are needed per month to drive the unemployment rate down significantly. and get this, since president obama took office we've seen the economy lose two and a half million jobs. president obama assuring americans there is a reason the numbers are so disappointing. listen to this. >> the sooner that the markets

know that the debt limit ceiling will have been raised and that we have a serious plan to deal with our debt and deficit, the sooner that we give our businesses the certainty that they will need in order to make additional investments to grow and hire, and we'll provide more confidence to the rest of the world as well so that they are committed to investing in america. >> molly henneberg live for us at the white house with more on the president's reaction. molly? >> hi, gretchen. clearly not the type of monthly jobs report any president wants to see. unemployment up for the third consecutive month to 9.2 percent, and the fewest number of jobs created in the past nine months. the president said today that, clearly, the economy is not creating enough jobs for everyone who's looking, but he cautioned that there have been and will be, quote, ups and downs on the way back from the recession. >> today's job report confirms

what most americans already know: we still have a long way to go and a lot of work to do to give people the security and opportunity that they deserve. >> reporter: house republican speaker john boehner called the jobs report, quote, june gloom, and blamed it on the president's, quote, misguided stimulus spending binge, excessive leglations and an overwhelming national debt. today's report comes out in the midst of intense negotiations between the white house and congress over what to do about the debt limit and if tax hikes and cuts to social security should be on the table. today boehner was cautious about getting to a final deal quickly. >> there is no agreement in private or in public. and as the president said yesterday, we are this far apart. it's not like there's some imminent deal about to happen. there are serious disagreements about how to deal with this very

serious problem. >> reporter: president obama agrees that, quote, real differences remain. he, boehner and other congressional leaders from both parties will meet here at the white house again on sunday. the white house says both sides likely then will engage in, quote, hard bargaining. >> a lot of people will be paying attention to that sunday meeting. thank you, molly. so what exactly is causing this hiring road block, and are we heading towards a double dip recession now? folks are getting very worried since unemployment has topped 8% for two years now, the longest streak since the 1930s. elizabeth macdonald is here to answer those questions, so i'm just going to throw it out there, why? >> reporter: why is it such a poor jobs report? is well, we've seen steadily eroding numbers for the last two months, gretchen, and we're seeing now, essentially businesses are saying, wall street analysts and ceos we talked to, you heard the

president mentioning certain thety and confidence. and that's what they need, certainty and confidence in the administration's policies. and one executive said to me, look, i feel like i'm stand anything the middle stripe of a highway because i don't know what's going to be coming at me from washington d.c. i think some others have said the cheapest form of stimulus in terms of job creation is restoring business confidence in what the administration and the congress is going to do. >> that's very interesting because that would be almost a free stimulus. >> reporter: yeah. >> instead, though, during that speech today he did talk about real money stimulus, rebuilding infrastructure like construction jobs and building more bridges. is that the answer? >> reporter: yeah, we've heard that. will it create more jobs? i mean, yes, it'll create government paid for jobs, but if government spending was the way to go, why is california's unemployment rate still above 123% on average? -- 12% on average? >> so we're seeing a fundamental restructuring in the u.s.

economy, gretchen, and that is to say that u.s. companies cut 2.9 million jobs in the decade ending in 2009. they hired 2.4 million workers overseas. so what you're seeing is a lack of investment here in the united states because i think -- not just at the federal level, buttal state policies as well. you need to get that smothering pillow of hyperregulation and taxation especially off of the small businesses too. >> so the president believes one of the main reasons job creation was low was because we haven't solved the debt limit crisis yet. do you think if we had sod that yesterday -- solved that yesterday, would that have -- >> reporter: that might have been a catalyst for the stock market. takes the private investment out and refunnels it toward the u.s. government, that's a legitimate argument. companies need to know that there is a stable tax environment, a stable regulatory environment in washington d.c. businesses do not feel that right now. on the one hand, small businesses are saying we're

getting a lot of stimulus money. on the other hand, they're being demonized as millionaires and billionaires when they are the job creators. they will get hit with those higher income tax rates that are being talked about on the 250,000 or up. >> it was interesting, because the president didn't talk about any of his policies as far as being the cause of these low job numbers. elizabeth macdonald, have a great weekend. >> you too. thank you. >> just a month after president obama said this about the economy: >> even though the economy's growing, even though it's created more than two million jobs over the past 15 months, we still face some tough times. we still face some challenges. you know, this economy took a big hit. there are always going to be bumps on the road to recovery. >> but that bump in the road more like a deep ditch now. so who or what is to blame for this? republicans say the white house has the economy in a head lock. democrats say the gop has to take job creation more seriously. so what are we going to do?

we're going to have a fair and balanced debate for you just ahead. you don't want to miss it. in the meantime, huge developments today in the most urgent debate in washington. the rush to raise the u.s. debt limit before an early august deadline when the treasury expects to start defaulting on loans for the first time in u.s. history. this morning president obama met with top house democrat nancy pelosi. just yesterday pelosi drew a line in the sand saying proposed cuts to entitlement programs cannot be part of any debt ceiling agreement. meantime, house republican leader eric cantor canceled a planned break later this month so lawmakers can hammer out a deal or at least try to. all eyes on the sky today as america's historic space shuttle program writes its final chapter. the shuttle atlantis blasting off for the program's final mission just a short time ago. >> two, one, zero, and liftoff.

the final liftoff of atlantis. on the shoulders of the space shuttle, america will continue the dream. >> or will we? pete hairy began is live at the -- steve harrigan is live in florida. i was watching that beautiful picture and so upset at the same time that i didn't get my kids in the front of the television at home to see this. this is historic. this is the last one. what was it like to be there? >> reporter: gretchen, it was just amazing to be here for a couple of reasons. first, stunning to see just that bright light, the flame from liftoff, and also stunning to see those astronauts just pack themselves in there, all four of them in their 40s in that space shuttle. it took about 50 minutes to get their places properly seated there, and just the stunning bravery to go up into space, to go up into orbit. not only the bravery they show in going into orbit, but also the confidence they show in the people they work with.

they're really putting their lives on the line here, and you get a sense of the fervor, the passion, the fanaticism of the people that work here and the pride they have taken in their job for the last 30 years. it almost didn't come off due to bad weather. even nasa experts were saying this was a 70% chance of a no go earlier this morning, but the heavy cloud cover eventually lifted. really a thrill for the crowds of people who did come out. as many as 750,000 people estimated to come, and all along the roads here along the beaches, the highways you see people park in their campers, in their rvs who really probably had this on their list for a long time and realized this would be the last chance. certainly, it was. as far as the mission of the atlantis, this is its 33rd mission in space, and it'll be a real mix of the practical as well as the science. as far as the practical goes, they'll be bringing up provisions to the international space center, about 8,000 pounds worth, enough for a year. as far as the science goes, they will be experimenting with how

to automatically, using robots, refuel spacecraft. of course, that could help if nasa's plans for travel long distance to mars do come off the ground. gretchen, back to you. >> what a thrill to be there. steve harrigan, you witnessed history. thanks so much. and if you missed the live shuttle launch, not to worry -- and this gets rid of my mommy mistake, i hope, because my kids and you will be able to watch the replay right now. just go to foxnews.com to see what you missed. tragedy at the ballpark. this is such a sad story. we're getting new details on what went terribly wrong for this father who took his young son to a baseball game. had enough of those annoying tsa patdowns? well, there are new reports saying things are about to get a lot worse in efforts to ramp up airport security. coming up, we're going to talk to congressman ron paul who says enough is enough. plus, reading, texting and arithmetic? one indiana school declaring it's more important to teach

kids good keyboard typing skills than to teach them how to write cursive? really? we're going to take a closer look at why this decision is upsetting so many parents. next. ♪ at bayer, we've been relieving pain for over 100 years. and today, we're re-inventing aspirin for pain relief. with new extra-strength bayer advanced aspirin. it has microparticles so it enters the bloodstream faster and rushes relief right to the site of your tough pain. ♪ in fact, it's clinically proven to relieve pain twice as fast new bayer advanced aspirin. extra strength pain relief, twice as fast.

gretchen: welcome back, everyone. the united nations now clearing a hurdle to build a high-rise next to its new york headquarters. lawmakers passing legislation to allow the u.n. to build on the site currently used as a city playground. the approval comes after years of opposition. now state legislators must reach a formal agreement with mayor michael bloomberg by october for the land transfer. the u.n. is already spending $1.9 billion renovating its new york headquarters. new details emerging in a terrible tragedy at a baseball game. a 39-year-old dad watching a

texas rangers game with his young son. look at this picture right here. he's reaching for the baseball, and then he falls head first over the railing plunging 20 feet to his death. chris gutierrez live for us in dallas. chris, i know that people are so interested in this story, but it must be so painful for you to have to report it. >> reporter: yeah. and, gretchen, you know, we've all been to baseball games, and we know how common it is for players to simply toss the ball up into the stands, and that's exactly what happened yesterday during the second inning of the rangers game. outfielder josh hamilton, who's the reigning al mvp, we should mention, of the texas rangers, tossed up a foul ball to the fan. but that fan reached over the railing. he lost his balance, and is as you mentioned, he slipped and he fell 20 feet below head first onto the concrete. initially he was responsive, but he later died on his way to the hospital. last night team president and ceo nolan ryan said this. >> as an organization and as our team members and our staff,

we're very heavy-hearted about this, and our thoughts and prayers go out to the family. >> reporter: that fan has now been identified as shannon stone. he's a 17-year veteran with the brownwood fire department. and as you mentioned; he was at the game with his young son who we're told is somewhere between 6 and 8 years old. this is the third time that a fan has fallen out of the stands at the ballpark in arlington, but this is the first time that someone has actually died doing so. the first fall was back in 1994, and in that case, gretchen, a woman fell from the upper deck some 35 feet. and after that fall the folks there at the ballpark in arlington raised the railings in that area from two feet up to four feet. back to you. gretchen: can you imagine that poor son having to witness that, and then his father passes away. chris, thanks very much. coming up on our show, a new court battle is underway

involving jared loughner. should he be forcibly medicated? judge andrew napolitano joins me to look at the facts. and as the unemployment rate ticks up a notch, the finger pointing begins on both sides in washington. so who's actually to blame for the jobless rate? a fair and balanced debate still ahead. >> today's job report confirms what most americans already know: we still have a long way to go and a lot of work to do to get people the security and opportunity that they deserve.

gretchen: welcome back. the alleged gunman in the tucson shooting rampage is promming a new legal -- prompting a new legal debate. an appeals court is looking at whether or not a federal prison

can forcibly give antipsychotic medication to jared loughner. last week the same panel of judges ordered the medication halted. the 22-year-old has pleaded not guilty to the shooting that killed six people and wounded 13 others including arizona congresswoman gabrielle giffords. joining me now is fox news legal analyst, judge andrew napolitano. so good of you to stick around on a friday for me. >> good to be with you. gretchen: this is a difficult thing, because you see it from both sides. >> i do. the defense argument is this, he's innocent until proven guilty. innocent people have a right to the determine what medication they will receive. he's not in jail because he's being punished, he's in jail because the government is concerned he might not show up on his own at the time of trial. and when the supreme court has authorized officials forcibly to medicate prisoners, it's after they've been proven guilty of a crime. but the government's argument is we know if he takes these medications, he will return to a

period where he's lucid enough to go on trial. gretchen: right, because -- >> and if he hides from these medications, he could prevent a trial for the rest of his life. those are the two arguments the court has to reconcile. gretchen: so currently they're not having the trial because the judge in the case ruled he wasn't competent, correct? >> okay. the government-hired doctors and mr. loughner's lawyer hired doctors. all the doctors agreed this guy is not competent to stand trial, and the judge agreed. so he put him in jail until he gets better. the prison system decides we can get him better by giving him these drugs. the appeals court said we're going to stop you now but give you a final rule anything a week or so. gretchen: it's sitting before the ninth circuit court of appeals of san francisco, and we know that is a left-leaning court. what does that say in an issue like this? >> it tells me that they will probably distinguish the supreme court ruling that lets jailers

forcibly medicate prisoners by saying that ruling and the cases on which it is based all occurred when the person being medicated had been convicted of a crime. but a not guilty person, and under the law he's not guilty, has the right to decide for himself or his guardian in this case has the right to decide for him whether or not to take the medication. prediction? the ninth circuit will not force him to get medication against -- gretchen: okay. i don't mean to put you on the spot but because you are a judge and used to wear the robe and -- >> the are you going to ask me what i would do? gretchen: yes! it's friday, judge, let's have a little fun. >> i would not let the jailers medicate him against his will. jeff grech is that because you're such a constitutional, you know, strict follower? >> it's because i believe in -- i fear the slippery slope, that if we let officials force medicate someone who is not guilty of a crime, it will lead to a dark side of our history we don't want to see again.

gretchen: all right, we'll have to wait and see. >> either way, this guy's never going to see the light of day. i can assure you that n. his mental state, there's no law that would permit him to be set free whether he's tried and convicted or tried and convict not guilty because of insanity. gretchen: have a great weekend, judge. >> you too. against grech every weeknight at 8 p.m. on the fox business network. >> thank you. tbrech grech if you thought airport security screenings are invasive now, just wait. screeners may be force today take drastic few measures. what could be more drastic than what they already do? our next guest is introduce ago law to restore dignity to american air travel. many are asking whether we can stay safe at the same time. >> that means aye -- i've got to place my hand on your pants, the

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military personnel will see a 1.6% pay raise. former florida congressman mark foley will have his prostate removed on thursday, eight weeks after learning he has cancer. he says the disease, luckily, has not spread. and atlantis blasting off on an historic mission marking an end to the program's 30-year run. when it comes to campaigning for the 2012 presidential race, former minnesota governor tim pawlenty seems to be following the playbook to a tee. at least in iowa. but after a lot of hard work, he's still not making headway in recents. so -- recent polls. let's ask steve brown. >> reporter: yes. the playbook in iowa says in order to win, you need a really good organization, and pawlenty has built himself by acclimation the largest and deepest team in

iowa. now, he was the first to hire. but in that time since he started hiring he has not moved up in the polls, and it's caused some folks to get a little nervous. just added this week, sarah huckabee sanders, she is the daughter of mike huckabee, former arkansas governor and presidential candidate who happened to win in iowa, and she says pawlenty will be fine. >> letting him get out there more often and be in front of the voters, i think once iowans have a chance to meet governor pawlenty, they fall in love with him. and i think the more he's in front of iowans, i think the better he's going to do. >> reporter: and there's going to be a very aggressive scheduling push in iowa over the next couple of days. i mean, there are dozens of events scheduled, not publicly released, but at least tent tyly scheduled. one of the things that folks who even support pawlenty question as to whether he is too nice. this came up in a town hall yesterday, and this is what pawlenty himself had to say

about that. >> you can be nice and strong. you don't have to be a jerk to be strong. you can be nice and strong, and that's the lesson and the style i have. [applause] >> reporter: and there are some folks out there, however, who are supporters who question whether or not he can really get down and dirty when it necessarily has to at some point in this particular campaign, whether or not being from minnesota where the cultural caveat is minnesota nice that perhaps he might be too nice for presidential politics. the campaign says that's ridiculous, but those questions actually exist in iowa. gretchen? >> gretchen: and i can attest to the phrase, because i'm from minnesota. it's true, the people there are really nice. steve brown, you live in the midwest, you understand that. thanks so much. >> reporter: sure do. thanks. gretchen: just when you thought airport security couldn't get any more unbearable, well, guess what? prepare for even more scrutiny now. the tsa warning that terrorists are seriously considering

surgically implanting explosive devices which could mean big changes in the screening procedures again, and chances are they won't be less intrusive. texas republican ron paul is a presidential candidate, and he is introducing the american traveler dignity act saying we should completely replace the tsa with private security firms. good morning, or good afternoon, i should say, congressman. i'm used to saying good morning on "fox & friends." sorry about that. [laughter] >> good afternoon. gretchen: so you are introducing a new plan to privatize what's now known as the tsa. how would that make it better? >> well, it'll make it efficient. there's no history to show that government bureaucrats are ever more efficient than the private market. but there's two different ways how you privatize something. if you just take the airport security and the government hires out private firms, that's not, for me, privatization. that's sort of a combination of big business and big government, and that doesn't solve the problem. the responsibility should be on the airlines just as it's on the responsibility of the owners of

chemical plantses and the owners of armored cars. they take charge of that, and they do a very, very good job. and the government was in charge of security before 9/11, and they did a lousy job. they prohibited guns from being on the airplane, and they said nobody should resist. and so we set the stage for 9/11. so i want the owners to assume responsibility, and the burden would be on the airlines, and it would save the taxpayer an awful lot of money. gretchen: so if i run an airline right now, tell me if i'm right or wrong, i don't think i like this plan because what's it going to cost me? >> well, that's the reason we don't have it. the airlines are in bed with the government. they, they're partners with the government. they don't want the liability, and they don't want the responsibility. but they should have it. yes, it'll cost them money, and you'll have to pay for it with a higher ticket, but you'll pay lower taxes. but they'll do a better job. and it's going to be so much more efficient, they're not going to take x-rays of you in the nude, and they're not going to prod and poke you.

they're not going to prod and poke little kids and 95-year-old women. they're going to figure it out because they've got to treat them like customers. so it's all the difference in the world. gretchen: but congressman paul, you're on capitol hill. you know that there's a lot of waste of taxpayer dollars. are you just assuming that if we privatize this that all the tax dollars that were going to the tsa would suddenly be begin back to us? >> well, it should be. you can't assume anything with the politicians and bureaucrats, because they always figure out a way to keep it. if they don't get enough, then they go to the fed and tibet the fed to do the -- get the fed to do the bailing out. it's outrageous, it's totally out of control. but you have to make the suggestion, what is the alternative? if you can't depend on government, whom should you fend on? and i say depend on the market. private owners take much better care of property than government has ever done. gretchen: let me tell you about some of the enhanced security measures that are, apparently,

going to go in place because of these reports about surgically-implanted bombs from al-qaeda. here it is. more behavior detection officers, more airport interviews and patdowns. in addition, in an effort to detect traces of explosives, passengers' skin and clothing may be swabbed. is that what you're talking about? >> well, i think that's an outrage. i mean, horrible. you know, if private airlines were doing it, they might have one sniff dog that knows something about explosives, and that's all you would need. you don't need all this other stuff. no, it's going to cost a lot more money, and i've said and i sincerely believe this, if american people can look at these pictures on tv about what they do to 95-year-old women, what they do to little kids and the groping of the groins, and if american people say, well, it's okay with me, i tell you what, we're in a lot worse shape than i think we're in. i think we've given up. if we accept that, we're in bad trouble. gretchen: right.

well, because, as you know the argument is a lot of americans are okay with that because they feel like in this day and age since 9/11 they might have to give up a liberty. i'm just saying that's the other side of the equation here. before you go, if you privatize airport screening and security, how does profiling fit into that? >> well, they're allowed to. because a private company has an obligation. if you don't like the airline and they do too much profiling, then you don't fly on that ire ire -- airline. but today they're not allowed to profile. so a 95-year-old woman gets treated like a terrorist, and somebody else who really looks like it, i mean, that guy i might want to ask him an extra question, oh, well, we can't ask him. as a matter of fact, they back off because he looks suspicious. no. a private airline has the right to be suspicious, and they can, you know, in a way. but if they overdo that, they're going to have a bad reputation, and the customers are going to, you know, make sure that they

hear about it. gretchen: very interesting. let us know how your new plan, the american traveler dignity act, let us know if it's successful or not. congressman ron paul, always great to see you. thanks sop. have a great weekend. >> thank you. gretchen: casey anthony will be a free woman in just nine days, and now we're getting new details on exactly what happened when her mom, cindy, apparently requested to see her daughter just days before her release. and president obama says we have got a long way to go, but many americans are demanding to know just where are the jobs? coming up, a fair and balanced debate on who or what is to blame for the latest unemployment report. >> there are always going to be bumps on the road to recovery. shovel-ready was not as shovel ready as we expected. [laughter] hey, the new guy is loaded with protein!

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gretchen: brand new details about a horrific attack at one of our national parks where a

grizzly bear mauled a man to death. yellowstone park rangers saying the bear was simply trying to defend her young when a hiker and his wife encountered the mama bear on wednesday. the bear, apparently thinking her babies were in danger, coming at the couple full charge. the man telling his wife to run, that's when the bear pounced on him, and it killed him. the hiker's wife survived by only playing dead. since the vicious attack, park rangers are warning hikers about that female bear and monitoring every move she and her cubs make by helicopter. all right, here it goes, folks. the blame game beginning again over the latest jobs numbers. republicans and democrats point fingers over who's responsible for the slowdown in the hiring and rise in unemployment last month. so let's take a listen to president obama earlier today and then house speaker john boehner. >> over the past few months, the economy's experienced some tough headwinds, from natural disasters to spikes in gas prices to state and local budget

cuts that have cost tens of thousands of cops and firefighters and teachers their jobs. >> after hearing this morning's jobs report, i'm sure the american people are still asking the question, where are the jobs? this the stimulus spending binge, excessive government regulations and our overwhelming debt continue to hold back job creators around our country. gretchen: bernard whitman, democratic strategist, and anthony holm are my guests to duke it out over this, guys, for a friday. good to see you both. >> good to see you, gretchen. >> thank you for having us. gretchen: bernard, can you answer speaker of the house john boehner's question, where are the jobs? >> well, if i had a crystal ball, i'd probably be reelected president three or four times. i think we need a three-part plan. obviously, the job numbers are disappointing, but we can do

three things immediately. the first is while we certainly have to rein in the deficit, we've got to invest in industries where the payout is going to be greater than the investment. the first one that comes to mind is construction, the president mentioned that. there are a million construction workers out of work, that's nearly double the unemployment rate nationally, and what we ought to do instead of the republican plan which is to gut infrastructure spending by a third which would throw another half million construction workers out of work, we ought to pass the obama jobs plan there which would provide 556 billion in loans that would both help hire these construction workers, get 'em off the unemployment rolls, generate tax revenues and help to repair our bridges and roads. that is the first thing we ought to do. gretchen: i want to get anthony in there because i'm interested in the knowing if you think that's a stimulus plan, number one, and if you think that it's a short-term fix. >> well, actually, there's another three-part plan that perhaps the president could follow. one, tell the truth. two, use accurate data. and, three, do what you say you're going to do.

how many times have we heard him say if just the top 1%, the millionaires and billionaires would give a little more, we could solve this problem? that's a lie. he knows it. , the irs has shown us if we took 100% of the income from that top 1%, we wouldn't geffen get a -- get a trillion dollars. obama has a pattern and a history of saying running and campaigning and saying that he's going to eliminate the bush tax cuts for the rich and then not. close guantanamo and not. the list is long, and t just fraudulent. and this continues a class warfare in the frawj lens in the his plan. so we have seen some great plans, and texas has one. we created 40% of the jobs. so the democrats have really failed. and rather than even play the blame game, let's look forward tord -- toward a solution. gretchen: bernard, do you admit there was some blaming going on in the president's speech today because some would say he blamed president bush by saying this was not created overnight, and

it won't be solved overnight. he also, some would say, blame congress. i didn't hear him say anything about his own personal policies. >> well, actually, i think a couple things on that. one is the president did admit he did make a mistake in his twitter town hall on wednesday. he said, you know what? i didn't properly prepare the american people for how long it would take to get our economy back on, up and running and how soft the housing market is. but let's move away from simple rhetoric and talk about the other two parts of the plan that i have. the first is we ought to extend the payroll tax holiday for employees that's set to expire in december. i think we ought. gretchen: he proposed that today. >> right. and i think we ought to consider putting in a payroll tax holiday for employers. that would help stimulate job growth, that would make me more likely to add employees. >> none of this matters -- grech grech anthony, will that infuriate his democratic base even more?

keep in mind nancy pelosi made a visit to the white house today. >> perhaps. but there's two things that jump out from that. one is none of this matters unless we reduce spending. they're talking about doing temporary taxing. if the taxation is too high, let's not do a temporary thing to try to kick start something. let's lower tacks and reduce spending. there's a very easy solution here. why make it temporary? [inaudible conversations] gretchen: mainly because, but, bernard, the president's on record saying while he was against the bush tax cuts, then he was for them, now he's against them again. >> no, sorry. let's be clear -- [inaudible conversations] he was absolutely against the tax cuts for millionaires. the only reason he agreed for that was to keep the tax cuts for the middle class. and the third thing i would push through is let's get these free trade agreements passed and on the president's desk. >> that's absurd. this is absurd --

[inaudible conversations] spending. gretchen: bernard, does anthony have -- let anthony talk about the spending, and i want to get your response. >> this is ridiculous that the president is talking about free trade agreements and trying to punt it to congress. our spending is 25% of our economic activity. it's unprecedented. only in world war ii have we been doing this. it's spending. and guess what? the stimulus has devalued the dollar. that's why we're having such weakness. we're going to have a really tough 12 months ahead of us, and he's trying to kick it back to the bush and kick it back to congress. just stand up, tell the truth and move on. gretchen: i did notice a different tone. bernard, will you at least give that, that there was a different tone in the president than last week when we came out? many people thought that was a very partisan speech last week. and then when the job numbers came out this morning, did you see a different president obama today? >> i think, frankly, the president's going to use every tactic publicly, privately, politically that he possibly can

to, first, get a deal with the deficit, and i think absolutely we need to rein in spending, particularly defense spending on that. i think that we need to raise the retirement age to save money, and i think that the president is going to do everything he can to try to get a jobs program through congress including stimulating consumer spending by getting those construction workers off the unemployment line and back making money and spending money. >> but he's done that. gretchen: bernard, anthony, unfortunately, i'm out of time, guys, but have a great weekend. >> have a good day. gretchen: as technology advances, people are reaching for key boards instead of a pen and paper. now the effect is being felt in one school. we're going to tell you which childhood lesson is being erased mow from the -- now from the curriculum. and meet minxy, and that's his best bud, chloe, on the left. this miniature horse is only a couple of weeks old and already facing a world of problems. but maybe folks out there can help.

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gretchen: fox news alert right now because thousands of protesters filling tahrir square in cairo, egypt this hour, angry over the lack of political reform since the country's historic revolution. secular groups are demanding reforms including more work towards social justice and do removal -- and removal of security forces and government members of the former regime. one state's public school system dropping the writing out of reading, writing and arithmetic. indiana among 48 other states switching now to new national

learning guides, and it's making some parents very upset. trace gallagher's live in our west coast newsroom. trace, i know you have two young girls, 7 and 10. one of the proudest moments for my daughter was when she finally learned the cursive writing, what about you? >> reporter: well, they are still doing it in our schools, and it's a skill they need. but the bottom line here is that educators across the country are saying that cursive is really a waste of time. they're saying that time could be spent on more important skills like typing. so as you said, 48 states now adopting new learning guidelines. the deal here is that teachers can still teach cursive if they want to, or they can abandon it altogether. instead kids would then have to be proficient at using a keyboard on the theory being that kids these days write most of their stuff on their computers and their hand held stuff. some e teachers say it's not how you write, or rather, you know, it's what you write.

a lot of educators say, though, that kids don't write properly these days because they write a lot like they text, you know? using acronyms, bad grammar, incomplete sentences. here's both a student and a parent. listen. >> if, like, the child doesn't know how to, like, handwrite, they could always learn how to type. >> kids are learning math and reading, and they'll say when are we ever going to use this? but they, obviously, do throughout their life. >> reporter: ever write a thank you note on a computer? not very compelling. it's a handwriting trait, there are a lot of educators split on this. i know that in our school where we're at still big advocates of handwriting, but a lot of other schools are just dropping it altogether. gretchen: it's such a shame, and you took the words out of my mouth because my mom instilled in me the art of writing a thank you note, and it's just not the same when it's printed on a out peer. -- computer. but, oh, well. i guess this is what we're

looking forward to. all right, trace, thanks so much. see you soon. a pony born prematurely across the pond. well, now, he needs life-saving surgery. that's a rare miniature horse facing certain death, though, unless his owner can raise thousands of dollars to pay for an operation. that's minxy, a horse born in if england two weeks ago with severely twisted legs. his owner is asking animal loves around the -- lovers around the world to help pay for the procedure. so she moved the pint-sized pony to her home. take a look at this shot. minxy has become best friends with a dog named chloe. we hope minxy gets the money. well, today the president making a rose garden speech to address the abysmal new job numbers. now critics are asking just why did the president's senior adviser say unemployment was not an important factor in the president's re-election? we'll debate that. and why police searching for

a suspect described as yellow and more than six feet tall -- how does the story end? we'll tell you next. >> the kid in midair flying like this, like a spartan from 300 kind of, except he was a banana. bizarre, i guess. not normal of the food chain. i mean, that's not really how it works, right? the gorilla should have won.

>> the white house describing this weekend's talk on the debt ceiling as vital. welcome to a brand-new hour of "america live." i'm gretchen carlson in for megyn kelly. america could be left with no cash to pay its bills.

both parties are still far apart. james rosen live for us on capitol hill. hi, james. report democratic lawmakers tell fox news when nancy pelosi met with obama were she laid down the law to him telling him the ongoing debt ceiling discussions must include revenue increases and the democrats will not compromise on the proposed cuts to medicare. pelosi was expected to get an ear from her own flock as they met to plot strategy. lawmakers and the white house are trying to trike a deal to raise the country's legal borrowing limit. while also agreeing on massive spending cuts the next 10-12 years. afterwards the my mort leader

was emphatic of laying out what she and her caucus plan to observe. >> we are not going reduce the deficit own subsidize tax cuts for the rich on the backs of working families. no benefit cuts in medicare and social security. >> reporter: key lawmakers will be returning 6:00 p.m. eastern time sunday night for a rare weekend session with the president. in obama said the two sides had good meetings but real differences remain. the top white house republican invoked an icon of the 1980s to portray how far apart two sides remained. >> i have wanted through this process to do what i describe as the big deal that would fundamentally resolve our spending problem and debt problem in the near to medium

term. >> at the end of the day we have to have a bill that we can pass through the house and the senate. this is a rubik's cube that we weren't worked out yet. >> reporter: lawmakers will stay in session until the week of july 18 which they had not previously planned. gretchen: now the clock is ticking in that debt debate. we are told a deal must be reached by july 22 for congress to draft and pass a bill on time for august 2. if not the u.s. could begin defaulting on its debt. that will be the first time we defaulted in u.s. history. the latest jobs report out this morning stunk. expectations were the economy would add 110 thundershowers

jobs? june. jobs -- woulded a 110,000 jobs? june. but instead 18,000 were added. you saw a decidedly different president obama today in his tone from last week when many those was chastising republicans to get back to work. it was all because of those job numbers that came out this morning. >> when you get down to it, the president can play the game inside washington and appease his political base. but a number like what you saw today which raises alarm among economists on the left, right and center tells the president, do a deal, do it now and get out of this. the uncertainty this puts into the economy will continue to do damage as long as he's holding out. gretchen: who is going to benefit from this? republicans or democrats.

james rosen told us nancy pelosi said no cuts to entitlement programs. and you heard the president may be willing to cut social security. >> isn't that irony for the president. just as the terrible numbers rein40s urgency to get it done now. it also reinforces what his base believes is the node for more stimulus spending. they see the old stimulus programs expire as motivation to spend more and to get the president to fight against republican calls for cuts. on the other side conservative republicans look at these job numbers and say this is evidence we have to cut god and get out of the way. these numbers also cause both sides to dig in on the fight. gretchen: last week the

president said he didn't think americans cared whether the president is involved in the debt talk. now the white house is saying it's vital. we don't have any time to waste. is that all because of what happened this morning? >> it adds to it. the president knows if the economy is on a downward pro joke tri, it becomes unlikely he can win a second term. so they need to look busy. even if they can't get the deal done, they have to look busy. they have to demonstrate that the president is working hard on this and that's why he will be working sunday night to try to show the president is engaged. gretchen: nasa making history and sparking fresh concerns. the space agency launching its

space shutting atlantic into space, triggering tough questions. including what's next for nasa employees now that the last nasa shuttle has launched? good to see you, tom. you are down there firsthand look at this beautiful historic moment, i maid to bring up the bad news of this beautiful moment because so many people are going to lose their jobs now. right? >> it was a beautiful launch. the team did an outstanding job second guessing the weather and solving last-minute technical problems. when the shuttle lands in 12 days atlantis will be coming home with layoffs. about 10,000 people here and in houston will love their jobs and that's an irreplaceable loss to the nation's technical skill, i think. gretchen: we had our brain room here at fox, they say sit could

be as many as 23,000 jobs just in florida, then down in houston, maybe another 4,000. also in alabama, apparently they do to shuttle support in huntsville there. and boeing. boeing would be affected by this, right? >> that's all true. those numbers add up and become larger as you look at the ripple effect. not only nasa employees, but the contractors directly involved in the shuttle. that's the drain we are looking at. it would have been nasa's plan to smoothly transition those people into the next program beyond the shuttle. but that hasn't materialized thanks to political decisions in washington. >> i can't imagine how you feel today as a former astronaut. you have done what you witnessed today, now, you know it's never going to happen again. so what's next? >> well, americans will ride rockets again. i think it will be four or five

years before they leave here from cape canaveral. my astronaut colleagues will continue to man the space station and perform valuable research there. it's a stepping stone to where we go next. if you what takes us there is the next question. we need to ask our lead officers they intend to keep america on the front tier. that would be bad for your competitive condition and it sends the yong message to the young people we like to inspire through excellence in education. unfortunately for kids, we keep going down in the numbers in technology and science and math. and is it fair to assume that the russians will take over the lead role and who would be not far behind. >> china is certainly proving their prowess in space. they talk about sending people

to the moon within the next 10 years. i'm here as a former astronaut because i was inspired by the apollo moon mission. to study see you anyone's high school and college. we need that same kind of magnet from the nation's commitment to commercial space flight to pull these young people -- their bright minds coming up today to challenge and take on that challenge. gretchen: no mat wear, you still say wow when you watch that shuttle go up into the air. it's one of the few things in life any more. you want to see more of it. thanks for your time today. we heard the grim new numbers out on unemployment in america. but have you heard what the president's top advisor said about unemployment and the election? nose comments may surprise you. plus a brand-new twist for the anthony family. cindy anthony asks to visit her daughter in jail tonight.

wait until you hear the response she got. with america's final shutting soaring into space. guess who may be taking the lead in space exploration? you heard tom jones. we'll have more coming up. >> the final liftoff of atlantis on the shoulders of the space shuttle. america will continue the dream. >> roger roll, atlantis. but i did. they said i couldn't get elected to congress. but i did. ♪ smetimes when we touch ha ha! millions of hits! [ male announc ] flick, stack, and move between active apps seamlessly. only on the new hp touchpad with webos.

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gretchen: just as floodwaters start to recede, the storms unleashed mudslides further north and crews are racing to restore electricity. 30,000 homes lost power during the big storm. troubling news on jabs today that could make it hard for the president to win a second term. the unemployment rate rising to

9.2% in june. one day after president obama's top political advisor said this. the average american does not view the economy through the prism of gdp or monthly job numbers. people won't vote based on the unemployment rate. mike gallagher joins me now and alan colmes will be more in just a moment. let me start with you. does david plouffe have it right? >> i'm so astound by the innate selfishness that the obama admin station must believe the american people possess. he's saying the average american is going to go to the poll oblivious to the condition of the country. we only care about our self.

we don't care about the deficit. this really does to me betray the utter arrogance that this administration has for the average american citizen. it's stunning to me. and i hope americans are paying attention because david plouffe speaks for the president. this guy is making political decisions on behalf of president obama as he fights for reelection. i think it's devastating and i hope americans are paying attention. gretchen: i want to bring in alan colmes. what we were talking about is one of the president's advisors saying the americans don't give a darn about unemployment numbers. he said sit would not affect the 2012 election. >> that many different than saying they don't give a darn. he did not say they don't give a darn about it, he said sit would not affect or be a big factor in

the election. he may be right. i don't know whether it's true or not because we have a long way to go before that actually happens. gretchen: president obama will have to do something no president has ever done since franklin roosevelt. right we are hat.2%. >> ronald reagan got elected by 7.2%. it doesn't sound very bad unless you compare it to how bad things had been. with roosevelt 22%, it looks good. laugh all you like, mike, but it's all relative. gretchen: the one difference was that actually unemployment was getting better at the time. so the psyche of the american public probably felt better, and that's why reagan may have won.

your thoughts. >> i have known alan for a lot of years. this is a good one. let's long for the good old days of the roosevelt era. go for the gold. >> it's all relative and that's the key. it's not just a number in the vacuum that means anything. >> gretchen's point is a good one in terms of the direction of the country. your side has to acknowledge the country is not head in the right direction. >> what are you going do that any different in the stimulus worked according to the congressional budget office and other indicators. we needed more of it. there is no plan coming from the right other than going to the bush policy. how did that work out for you. abo. anybody but obama. >> you run on that and see how that work out for you. >> you wait and see.

>> according to the cbs poll, nobody is polling better than% on the republican side. nobody is happy on the right for the candidates that you have. gretchen: that could change after the job numbers came out. >> let's embrace romney who has the answer now. gretchen: these job numbers are startling and i think a lot of americans will be sad about it. >> what's the plan on the other side any haven't heard what it is. >> the plan is to make sure on my radio show that the american people understand that the obama administration basically said we don't care -- >> other than beating up on obama, what many your plan? tell me what it is. >> we are a year move away from the general election. >> wham your plan? >> we'll start with the ryan plan. >> the american people said they

don't like the ryan plan. they don't want to do it. gretchen: i don't know if you can say the american people flatly don't like the ryan plan. >> by what margin. >> by over 50% don't like the ryan plan. poll after poll after poll. check it out. gretchen: help me out with there is. the economy would have to add 350,000 jobs every month between now and december 2014 to get back to the prerecession low of 5 per unemployment. that's 2 years after the next elect. >> we need infrastructure. and i want to hear what the other plan is. give me the right wing plan. >> it's not more stimulus. how about that? it's not more stimulus. >> what's the positive message?

i want to hear it. gretchen: guys, i have got to go. i have know one thing for sure. alan colmes is fired up for the weekend. there is no doubt about that. take care. see you later. california, here they come. principle william and his bride kate on their way to the golden state. a banana attacking a gorilla. the full story straight ahead. >> bizarre, i guess. not normal of the food chain. that's not how it works, right? the gorilla should have won.

gretchen: prince william and his wife kate are heading to l.a. they are only spending a weekend in california and their action-packed schedule leaves them little time to rest. casey stegall is live for us in los angeles. what are they doing there? are you going to get a sneak peek? >> we'll get up close and personal. a lot of buzz surrounding this visit' the beverly hilton hotel will be their first official stop at 4:30 local time. they will be reeled down around 3:40 local time where the plane will be greeted by the british ambassador. this is the first visit to america and his royal highness has never been to california. part of their busy 3-day agenda, all private events. including a party hosted about it consul general.

a to low match tomorrow, then a visit to skid row sunday in downtown los angeles to raise awareness for homelessness. it is one highly anticipated visit. >> it many exciting for every one. >> reporter: there will be center few opportunities for members of the general public to catch a glimpse of the royal couple. even no trespassing notices have been issues by l.a.p.d. for parts of los angeles to try and keep the paparazzi away. but of course fox news will be following them and tracking them every step of the way and we'll have live reports for you all weekend right here. gretchen: don't trespass. i would hate to see if you jail over the weekend. >> more trouble between casey anthony and her parents. details on that.

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gretchen: nasa space shuttle atlantis blasted off on the program's final mission. the final journey, rowgs emotions on a scale not seen? years. it isn't the end of the space agency. doug mche willway live from washington. that good news. i think a lot of the people think end of the shuttle, end of nasa. >> there is a lot of debate about what the future of nasa is. this museum gets something like $5 million advice towards a year. one of the most visited museums in the world it's a testament to the glories of nasa in the past, but not necessarily to its glories of the future. the immediate future or nasa will sandbag marked by the layoffs of 3,200 shuttle workers. the obama administration has a

planned mission to mars. here is what the president said earlier this week in a twitter town hall meeting. >> let many start thinking about what is the next horizon. what's the next frontier. but in order to do that we are going to need some technological breakthroughs that we don't have yet. report report administration is pinning its hopes on the private sector. while nasa eventually focuses on deep space mission. but a lot of people are sceptical. he fears the loss of america's pioneering spirit. >> i think that the piloted space flight program is about the american myth and without human space flight i think the

country would be impoverished and we have to re-examine what it is to be american. >> reporter: it's not just administration pulling in the reins of nasa. neither the congress is willing to spend the vast sums of money needed to fund an apollo progr program. gretchen: thanks so much. brand-new developments in the casey anthony family drama and they highlight the tension we saw in the courtroom between casey and her parents. casey anthony declining a request by her mom to talk with her in jail tonight. cindy anthony asked to do a video visit with her daughter by casey nixed that. political commentator is a her

to of the "the single girls." tgif, every one. what do you think about this, china. cindy anthony getting the smackdown from casey. hasn't talked to her in three years, right? >> of course. i was very suspicious when i heard the allegations about her father. unless she is mentally unstable it's hard to accuse your father of something like that. if she wants to have kids in the future. let's see grandma cindy? i don't think that's going to happen. i think it will be a tense family situation. gretchen: or to accuse you're father when you are facing the death penalty, do you accuse your dafds molestation because you want to save your life. >> casey anthony is a true sociopath. when she needed her family she

initially spoke to them hoping they would come through for her on the trial. when they got on the stand and i believe they were truthful except when cindy tried to save her live with the chloroform. she has hit paydirt. she was acquitted of that crime and now she can go on and doesn't need them. gretchen: it's interesting the mom wants to see her. >> it's the mother-daughter relationship. she is going to have a big shock when she goes out into the world. she has been in prison for three years. she'll be on her own. gretchen: while she was still in prison, she apparently is doing these writings to other inmates and talking about doing things like writing a book. so part of it is what -- don't see you yet, wait until i read it. she says she is thinking about

partial memoir comedy/relationship advice for those not in the know. i'll keep praying about it and see how god feels. would you buy that book? >> no motherhood advice. just relationship advice? what's going on when they does write a book, though. i think she should do it with the help of a therapist and show us what's going on in her mind. >> what story would she tell. i thought this through. let's say just for a minute she had something to do with the death of her daughter. is she going to write that even if it's just an accident. >> it would defend what the publishers want. what's interesting is apparently the state may be trying to get state from any earnings she has to pay off the trial. gretchen: can they do that? >> no, they can't do that. if she had been convicted it's

the son of sam laws. then you cannot profit on any crime you committed. but she was acquitted. so she can go to the highest bidder and reap all those reward of her crime as horrendous as that is. people who do do that would be her brother and parents. >> the reception of o.j.'s book wasn't so great. gretchen: she said in these letters that she wants more children. as a prosecutor when you hear that what do you think? >> that sends a shiver down my spine. i guess she has the right for the same reason that people are very when you write we bhai not agree with. one of the things she wanted write about is about god. no child deserves casey anthony

as a mother. gretchen: what do you think about the way she changed her look. throughout the trial we see her with a pink ruffled blouse looking like she was amish and her hair was pulled back in a ponytail. then when she is going to be sentenced by the judge, it looked like she was going out on the town. >> part of that would be the defense telling her what to wear. she has been in jail three years. she has no idea of the mob mentality going on outside. 17,000 likes for the we hate casey anthony page. gretchen: does she have t snrrks prison. >> she knows. she does know. she not she was going out on the street and could go back to the party that day. her demeanor changed dramatically. when she washed with out after that she pulled a lipgloss out

of her pocketbook. glech * they probably told her to dress demure when the youry was looking at her. wouldn't it have been smart for the attorneys to tell her to keep the same look on sentencing? gretchen: she is coming out and she may have to have protection for her own safety. >> she'll. by she has had all this weight on her shoulders. i don't think casey anthony wins. it is a death sentence if you did kill your child. if you didn't kill your child, think about how much it -- if she is sociopathic she wouldn't care at all. letting her hair down, it's hair. gretchen: let many talk about this new petition drive and some members of congress who want to start this new law called caylee's law.

they want to make it a federal offense for failure to report a missing child within 24 hours, and failure to report a child's death within 24 hours. she would have been serving more prison time if these laws were on the books. >> i think there is a great idea. there will be big hurdles. when tried to do tonight new york and other states. in most states there is no duty to report a crime. when you are talking about a caregiver especially the part to report a missing child makes sense. i hope that passes. they will have a harder time to report a dead child. gretchen: usual live you would report a dead child unless you were responsible for the crime. >> to put common sense into law is the one huge horrific thing coming out of this case.

>> i wish the prosecution had couple with anchors to make this law make more comprehensive sense. gretchen: you are going to stick around for another segment. but before i let you know, we switch topics. did the jury get it right? >> i'm a big believer in the jury system but i'm disappoints in the verdict. >> who are we to judge the jury, we can't. it is very tricky. >> i don't think it's about whether the jury got it right. i think the prosecution got it wrong and they should have done more to prove a cause, and they didn't. i think they overreached in their punitive. gretchen: those are two separate issues in overreaching for a penalty and whether they had the evidence to do anything more. stick around because you know tough times are in america. look at today's rising unemployment number.

now new evidence many americans could tighten their belts even more. what are you willing and not willing to give up to save some money? plus they may be the most famous couple notice world but do will and kate have something up their sleeves. how they could keep the paparazzi at bay during their l.a. visit.

and

>> i have a bit of a jean fetish. they are not costing $50. but you need to go through 20, 30 pairs. but they are not with the $40,

500. >> you are going to wear them a lot and then it costs to wear them. i like that. gretchen: let's talk about this. the royals, the cute couple, i saw you over at the royal wedding. they started their marriage. now they are here coming to los angeles. but the paparazzi not going to get many great shots of them because -- let's face it, william has a smiling dislike of the media. he believes that the media killed his mother. he knows they are there and they are part of his life. but he's incredibly protective of kate. if he can get away with the paparazzi not being shot, that's where you do it. when it comes to l.a., let's face it, the whole choice has been about canada. the canadian government paid for most it. the l.a. is a side bar.

what they are trying to do with kate is learn the lessons. that's what's happening now. we save the on the first world tour. he has been protective of her all the way through. do you think that's americans are not as interested in the royal couple so the paparazzi shots wouldn't be as valuable. >> that's a melancholy view of it. i don't think we care. we have a 9.2% unemployment. we don't want to invest all our time sphaik staking out the royals. gretchen: what about for the escape? i think a lot of people would argue when you are depressed you see people are worse off than you are sometimes. >> the gossip magazines sell,

and because it's so staged for the reasons imogene just gave us, it take the mystery out of it. because of the security i think it will be unlikely will and kate will go to starbucks to give the paparazzi their shot. gretchen: can you imagine living that life? fantastic pan, have a great weekend. is it the moment we have been waiting for? the banana versus the gorilla in the panel might stick around for this one. the faceoff left the guy in the gorilla suit with more than a bruised ego. you don't want to miss this. [ slap! ] [ slap! slap! slap! slap! slap! ] [ male announcer ] your favorite foods fighting you? fit back fast with tums.

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gretchen: welcome back. the sight of a big gorilla would make think twice about picking a fight. a gorilla mascot in a costume is attacked by a banana. >> reporter: the breaking news, it looks like the banana was stalk can that gorilla. while the gorilla was walking around advertising his goodies, that banana was hiding in the bushes. then when the gorilla turned around, the banana tack manied the gorilla. and the manager called 911.

listen. >> some kid in a banana costume just tackled my mascot. >> we'll send somebody down to check around for a kid dressed in a banana costume. >> reporter: everybody look out for the kid in the banana costume. the guy in the gorilla costume got beat up pretty good. but the manager's interview was funny. >> a kid just emerged out of the bushes out of nowhere in a banana costume and started sprinting as quickly as he could at our gorilla. he was flying like this like a spartan from "300" except he was a banana. he kept running with a few other kids and the gorilla got back up and adjusted his head and kept

wavering his sign around. >> reporter: you heard the banana saying the -- you heard the manager say the banana was running with a few other kids. the kids' lemonade stand was robbed by some teenagers. the teenagers were wearing skinny jeans. and now i'm thinking skinny jeans, skinny banana costume. it might be the lemonade bandit. it was in the same place. gretchen: that is a forecast * if we prove that. thanks, have a good weekend. the shuttle at land is blasted off and shepherd -- the shuttle atlantis blasted off and shepard smith was there to see it live. [ male announcer ] this is lisa, who tries to stay ahd of her class.

morning starts with arthritis pain... that's two pills before the first bell. [ bell rings ] it's time for recess... and more pills.

afternoon art starts and so does her knee pain, that's two more pills. almost ne, but hang on... her doctor recommended aleve cause it can relieve pain all day with just two pills. this is lisa... who switched to aleve and fewer pills for a day free of pain. and get the all day pain relief oaleve in liquid gels. >> that are for watching, everyone, "studio b" with shephard smith is live in